Union Jack Oil PLC Wressle Development Update (5334G)
November 26 2020 - 01:00AM
UK Regulatory
TIDMUJO
RNS Number : 5334G
Union Jack Oil PLC
26 November 2020
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement
26 November 2020
Union Jack Oil plc
("Union Jack" or the "Company")
Wressle Development Update
Union Jack Oil plc (AIM: UJO), a UK focused onshore hydrocarbon
production, development and exploration company are pleased to
announce an update on the development of the Wressle oil field
("Wressle") and details of a loan facility provided by Union Jack
to the Operator, Egdon Resources plc ("Egdon").
Wressle Development Update
Wressle is located in North Lincolnshire within Licences PEDL180
and PEDL182. The Company holds a 40% economic interest.
Wressle is at an advanced stage with site reconfiguration works
completed and the installation of surface facilities currently
ongoing at the site. To date, the storage tanks and inspection
gantry have been installed and work is advanced in respect of the
electrical and control system installation.
Delivery of all remaining equipment is expected during December,
despite the challenges posed by the impact related to COVID-19
restrictions around certain suppliers.
The PEDL180 and PEDL182 Joint Venture has decided to defer
workover operations and final commissioning of Wressle until
January 2021, eliminating any possible operating and supply chain
issues associated with the December festive shutdown.
The mobilisation of the workover rig will take place immediately
in the New Year, with the workover being completed and initial oil
flows anticipated later in January 2021.
Recent photographs of the Wressle development site can be found
at www.unionjackoil.com.
Loan Facility and Charge Agreements with Egdon
Union Jack has agreed to provide a GBP1,000,000 loan facility to
Egdon.
Facility and Charge agreements have been executed between the
Company and Egdon, which include the key terms as set out
below;
-- 18 month term
-- Principal sum payable at end of the term or in part or in
full at any earlier time at the discretion of the borrower
-- Interest will accrue daily on the outstanding loan amount at
an interest rate of 11% per annum and is payable quarterly,
commencing on the earlier of the first quarter end-date following
initial production or 1 April 2021
-- The loan is secured against an unencumbered 25% interest in
PEDL180, and PEDL182, including the Wressle development project and
associated infrastructure
The facility, as well as providing a commercial return on funds
will also assist in the development of the Wressle oil field, a key
asset for Union Jack, with anticipated production of 200 barrels of
oil per day net to the Company.
For further information, please contact:
Union Jack Oil plc Via Cassiopeia Services Ltd
David Bramhill
SP Angel Corporate Finance LLP +44 (0)20 3470 0470
Nominated Adviser and Broker
Richard Morrison
Richard Hail
Caroline Rowe
Cassiopeia Services Ltd +44 (0)7949 690 338
Public Relations
Stefania Barbaglio
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END
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